Photo from UNIAN
The relevant bill was supported by 250 lawmakers.
Draft law No. 8487 which introduces new rules for customs clearance of imported cars with foreign registration passed its second reading on Thursday, November 8.
The bill introduces changes to the Tax Code of Ukraine in part of excise tax on passenger cars and lowers customs clearance costs for Ukrainians who have bought their cars abroad.
The relevant bill was supported by 250 lawmakers with the required minimum being 226 votes.
Presenting the bill, Chairperson of the parliament's tax and customs policy committee Nina Yuzhanina said the legislation would introduce basic excise rates depending on the type of the engine and engine displacement. In particular, the rates will be EUR 50 for a three-liter petrol engine and EUR 100 for petrol engines with greater displacement, while those for diesel engines will be EUR 75 (up to 3.5 liters) and EUR 150 (for over 3.5 liters).
What is more, a multiplier will be applicable depending on the age of a car: vehicles that are older than 15 years will be subject to a multiplier of 15.
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Used cars that have already been imported without taxation before the introduction of the law will be subject to a decreasing coefficient of 0.5 if customs clearance costs are paid within 90 days after the law becomes effective, Yuzhanina said.
The earlier imported but untaxed cars could be transferred to the regime of imports if an owner pays a fine worth UAH 8,500 (about EUR 265).
Yuzhanina explained that the entire income from the customs clearance of such cars in 2018-2019 would be channeled into the payment of pensions.
As reported by UNIAN, the Verkhovna Rada on July 13 passed the said draft law in the first reading.
Under the bill, customs clearance costs will depend on engine displacement and the age of a car and their sum will be equal to the basic rate multiplied by the engine factor (displacement divided by 1000) and the age factor.
According to the explanatory note of the bill, for example, the excise rate on a new car with a petrol 1.6-liter engine will amount to EUR 80, on cars that are not older than five years to EUR 400, and on those that are not older than 15 years to EUR 1,200.
At the same time, the excise rate on a new diesel car with a 1.6-liter engine will amount to EUR 120, on cars that are not older than five years to EUR 600, and on those that are not older than 15 years to EUR 1,800.